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Chark said:
What if I just said okay to this, and for example PS4 goes subscription style. PS4's entire library available digitally for a monthly fee. You don't want a subscription, buy physical games. Sony has already said they are keeping physical medium for PS4 but that doesn't mean they won't have a full digital option and its a good idea to keep blu-ray/dvd capabilities in their console.

Gaming is now Netflix. I don't see a problem. In fact with the new push with PS Plus, I don't see how Plus will transition with a new console unless it takes this route, lest they decide to delay most Plus game benefits like they are with Vita because all the games are so new it would be hard to give them away for $4.17 a month. It would be interesting to see this as an option for next gen. By creating a more convenient means of accessing games will cut into the used/rental/piracy markets.

Once the used and third-party rental markets are eliminated look for prices to start to go up, particularly if you get locked into a single platform.  

You will also have them ALWAYS adding a bit of multiplayer required to games, to justify doing things (think of Mass Effect 3 as an example of the future).  Then they proceed to eventually pull the plug on the server and make you put more money down for a game, if they do this.  Or they do a version of Elite, where you get the latest disk.  Well, this i assuming in the next 10 years they still have disks.  They go Onlive approach and cloud, say goodbye to disks.  Once the physical medium is gone, and all digital, they the subscription model will increase even more.  The market will end up being viable enough that they won't care the 20% upset storm off.